Netflix closed out 2024 with a quarter so strong it sent shockwaves through Wall Street. Shares surged more than 15% after the company reported its fourth-quarter earnings, fueled by record-breaking subscriber growth and a bold move to raise subscription prices.
The streaming giant isn’t just playing in the entertainment industry—it’s leading it, and investors are paying attention.
Subscriber Growth That Stole the Show
Netflix shattered records by adding 18.9 million subscribers in Q4, pushing its total paid memberships past the 300 million mark.
Co-CEO Ted Sarandos pointed to Netflix’s unmatched ability to deliver variety and quality:
“We’ve built this business on variety and quality across regions and genres. It’s all about giving our members what they want, when they want it.”
This growth wasn’t accidental. Netflix leaned into its content strength, with the second season of Squid Game drawing millions and live events like the Jake Paul vs. Mike Tyson boxing match and Christmas Day NFL games pulling in massive audiences. The boxing match alone was streamed 65 million times worldwide, proving that Netflix knows how to command attention across demographics.
Financial Performance That Impressed Wall Street
Let’s talk numbers. Netflix reported $10.25 billion in revenue for Q4, a 16% year-over-year increase, and earnings per share of $4.27—both beating Wall Street expectations. Net income more than doubled from the previous year to $1.87 billion.
These results were strong enough for Netflix to boost its 2025 revenue forecast by $500 million, now projecting between $43.5 billion and $44.5 billion. The company’s pivot from a subscriber growth-at-all-costs model to a more balanced focus on profitability is clearly resonating with the market.
Price Hikes: A Calculated Gamble
Netflix also announced higher prices for its plans, a move that didn’t sit well with everyone. The ad-supported tier went from $6.99 to $7.99, the standard plan rose to $17.99, and the premium plan now costs $24.99 per month.
Unsurprisingly, the backlash was swift. Social media lit up with criticism, with one user tweeting, “Netflix has lost the plot. $25 a month is embarrassing.” Another subscriber suggested mass cancellations to “teach them a lesson.”
Still, there’s a silver lining. Netflix’s ad-supported tiers accounted for more than 55% of new sign-ups, with memberships on these plans growing 30% quarter-over-quarter. The company is clearly betting that ad revenue and lower-tier growth will offset the sting of higher prices for premium plans.
The Road Ahead
Netflix isn’t resting on its laurels. The 2025 content slate is stacked with returning hits like Stranger Things and Wednesday, along with high-profile films like Knives Out 3 and Guillermo del Toro’s take on Frankenstein. Live events are also becoming a key part of its strategy, with the success of its sports experiments laying the groundwork for future growth.
The company is also innovating on the business side, introducing “Extra Member with Ads,” a feature that allows ad-supported users to share their accounts with others for an additional fee.
It’s a smart play to capture more revenue while accommodating budget-conscious users.
The Bottom Line
Netflix’s strategy is clear: deliver unparalleled content, expand into new markets, and keep innovating. Its stock price surge reflects investor confidence, even as the company navigates criticism over its price hikes.
As Sarandos put it, “We’re fortunate that we don’t have distractions like managing declining linear networks.” Translation: Netflix has its eye firmly on the future while competitors struggle with legacy businesses.
For now, Netflix remains the leader in streaming, proving that when it comes to growth, profitability, and innovation, it’s playing in a league of its own.
